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Question
Consider a six-year maturity, $100,000 face value bond that pays a 5 percent fixed coupon annually.
What is the price of the bond if market interest rates are 4 percent?
A. $105,816.44.
B. $105,287.67.
C. $105,242.14.
D. $100,000.00.
E. $106,290.56.
Answer
This answer is hidden. It contains 54 characters.
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